The monetary policies should be more flexible and “looser” a little bit in 2012 to help and assist economic participants.

The monetary policies should be more flexible and “looser” a little bit in 2012 to help and assist economic participants, the local online newspaper Dantri.com.vn quoted Le Xuan Nghia, Vice Chairman of the National Finance Supervision Committee (NFSC), as saying.

Too tight monetary policies in 2011 made businesses face a lot of difficulties, the overall industrial index plunge, inventory pile up, the stock and real estate markets hard to recover in the short term.

In 2012, commercial banks will be subject to new laws, requesting them to prepare their financial statements in line with international standards, set aside provisions in accordance with Article 7 in Decision 493 of the government, disclose information periodically, etc, Nghia added.

This year, the government needs to focus on recovering liquidity for the whole economy, especially for small banks and SMEs. Besides, it is necessary to improve liquidity for real estate and stock markets to support local commercial banks in reducing their bad debts.

The State Bank of Vietnam (SBV) should allow local lenders to freely provide loans as long as they can meet all bank prudent ratios, Nghia said, emphasizing that their capital adequacy ratios (CAR) must be at least 8%.

 

Source Sophie/ StoxPlus